Whether you own a medical spa or a day spa, the treatments and services you provide to your clients involve a high level of personal interaction. Unfortunately, the more personal interaction your business has, the higher the exposure to liability risks. Medical spas (or medispas), in particular, face larger risks due to the procedures they perform, such as laser hair removal and other procedures utilizing medical equipment.
Fortunately, local independent insurance agents can help you get set up with the right med spa insurance or day spa insurance policy for your business. They'll get you matched to all the coverage you need to protect against a myriad of risks. But first, let’s talk more about the spa insurance protection you need and why you need it.
Key Takeaways - Spa Insurance
- Day spas, medical spas, and wellness centers all need protection against potential financial losses due to lawsuits, commercial property damage, business shutdowns, and other risks.
- Spas pay an average of $42 per month, or about $504 per year, for general liability insurance alone, but the cost of a complete policy can depend on all the types of coverage necessary and other factors like your location.
- Certain elements of spa insurance, such as workers' compensation, might be required by law for your business to avoid state penalties like fines.
- Working with an independent insurance agent is strongly recommended, as they can tailor a policy to meet the needs of your unique spa business.
What Is Spa Insurance?
Spa insurance is a specialized type of business insurance designed to cover the risks associated with running a spa, salon, or wellness center. You may also hear this coverage referred to as salon and spa insurance, massage spa insurance, beauty salon insurance, and others. Salons, spas, and wellness centers all need similar coverage to protect against liability risks that arise from working with and treating the public, in the form of spa liability insurance.
A complete spa business insurance or wellness center insurance policy will include several types of coverage. Your spa needs protection against losses that can arise from business property damage, employee injuries, and unexpected shutdowns. An independent insurance agent can help you find the right policy to protect your unique spa, whether it's medical spa insurance coverage or day spa insurance.
What Does Spa Insurance Cover?
Spa insurance is designed to cover your business against many types of loss, including those stemming from liability claims and commercial property damage. Your spa insurance policy will likely include some or all of the following:
- General liability insurance: This covers third-party claims for bodily injury or property damage, and the resulting legal defense costs in the event of a lawsuit.
- Professional liability insurance: This covers client claims of professional errors, negligence, etc., that caused injury, such as an oversight during a treatment like a facial, massage, wax, or body wrap that led to a burn. It covers your legal defense costs in the event of a lawsuit.
- Commercial property insurance: This covers the theft, damage, or destruction of your business's property, equipment, inventory, buildings, etc.
- Workers' compensation insurance: This covers expenses stemming from work-related employee injuries or illnesses and exempts your business from employee lawsuits for covered incidents. Coverage is usually mandatory if your business has employees.
- Product liability insurance: This covers client claims that a product your business manufactured or sold caused an injury, allergic reaction, or another type of harm, and can pay for your legal defense in a resulting lawsuit.
- Business interruption insurance: This covers ongoing operating expenses during temporary shutdowns caused by listed perils, such as serious fire damage or vandalism.
- Cyber liability insurance: This covers expenses arising from data breaches, cyberattacks, and other digital threats that may result in the sale or exposure of sensitive or private data, such as customer credit card records.
An independent insurance agent can help you build a complete policy for your spa that includes professional liability and all the other types of necessary coverages.
Who Needs Spa Insurance?
Several types of businesses and professionals can benefit from having a version of spa insurance. You might need this coverage if you own or work at any of the following:
- Day spas
- Medical spas (or med spas)
- Beauty salons with spa services
- Massage therapy centers
- Holistic health practices
- Wellness centers that offer skincare or body treatments
Work together with an independent insurance agent to get equipped with the right type of spa insurance. This may be packaged as med spa insurance, massage spa insurance, wellness spa insurance, beauty therapist insurance, or esthetician insurance.
How Much Does Spa Insurance Cost?
Spa businesses pay an average of $42 per month, or about $504 per year for general liability insurance alone. The cost of a complete spa insurance policy can depend on the types of coverage needed and certain other factors, such as:
- Business size and location
- Services offered
- Annual revenue and payroll
- Number of employees and practitioners on staff
- Coverage limits and deductibles
- Claims history
Here are some average spa insurance costs by coverage type:
- Professional liability insurance: $42 per month
- Workers' compensation insurance: $83 per month
- Cyber liability insurance: $145 per month
You might be able to save money on your spa insurance by bundling your coverage with another policy through the same insurer or by taking measures to reduce your business's risks. An independent insurance agent can help you find affordable spa insurance near you.
The Benefits of Spa Insurance
Having spa insurance offers many benefits, such as financial protection from client, customer, and other third-party lawsuits. It can also protect your business against employee injury and illness claims. Further, this coverage can help reimburse your business for stolen or damaged commercial property and cover expenses during temporary closures. An independent insurance agent can provide even more examples of why spa insurance is important.
How to Get the Right Spa Insurance Policy
When shopping for coverage, you'll first want to determine the exact type of policy your unique spa needs. An independent insurance agent can help your business evaluate its coverage needs. They can then compare spa insurance quotes from several of the best spa insurance companies in your area. Your agent knows which spa business insurance providers are highly rated and reliable. They'll ensure you're matched with a policy from a carrier you can trust.
Here's How an Independent Insurance Agent Can Help
Your spa business is important to you, and having the right coverage for it should be equally important. A local independent insurance agent is equipped to help you find the right policy to protect your med spa, day spa, or wellness center. They have access to several carriers near you and can shop and compare policy options and quotes to find the best deal. And down the road, your agent will still be there to help you file business insurance claims or update your coverage when necessary.
FAQs About Spa Insurance
What type of insurance do I need for a day spa?
Day spas need several types of coverage, including professional liability, general liability, and commercial property insurance. An independent insurance agent can help you build a complete day spa insurance policy.
Is spa insurance required by law?
Spa insurance might require you to obtain state-issued licenses that allow you to legally offer various services to the public, such as massage. You'll need to review your local requirements to be sure.
How much liability coverage should a spa carry?
The amount of liability coverage your spa needs will depend on your unique business's exposures, such as the services you offer and how many clients you treat annually. An independent insurance agent can help you get set up with the right amount of liability coverage.
Does spa insurance cover independent contractors like massage therapists or estheticians?
Yes, spa insurance can cover independent contractors, including massage therapists and estheticians. Ask your independent insurance agent to help you find the right coverage.
Can I get a bundled policy for salon and spa insurance?
Yes, bundled salon and spa insurance policies are available.
What happens if a client sues my spa for an allergic reaction?
If your business faces a lawsuit for a client's allergic reaction, your professional liability insurance may cover the claim. Your coverage can pay for damage to the affected client and for the cost of your business's legal defense in the lawsuit.
Does spa insurance cover theft or equipment breakdown?
Yes, spa insurance can cover theft and equipment breakdowns, depending on your coverage. Ask an independent insurance agent to help you add this coverage to your policy.
Do day spas and medical spas need different coverage?
Yes, medical spas might need additional coverage compared to day spas. Review the med spa insurance requirements in your state to learn more.
Sources
https://www.insureon.com/personal-care-business-insurance/day-spas/cost
